Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/37481 
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dc.contributor.authorFöllmi, Retoen
dc.contributor.authorWuergler, Tobiasen
dc.contributor.authorZweimüller, Josefen
dc.date.accessioned2010-08-11T08:53:16Z-
dc.date.available2010-08-11T08:53:16Z-
dc.date.issued2010-
dc.identifier.urihttp://hdl.handle.net/10419/37481-
dc.description.abstractWe study a model of endogenous growth where firms invest both in product and process innovations. Product innovations (that open up completely new product lines) satisfy the advanced wants of the rich. Subsequent process innovations (that decrease costs per unit of quality) transform the luxurious products of the rich into conveniences of the poor. A prototypical example for such a product cycle is the automobile. Initially an exclusive product for the very rich, the automobile became affordable to the middle class after the introduction of Ford's Model T, the car that put America on wheels. We show that an egalitarian society creates strong incentives for process innovations (such as the Model T) whereas an unequal society creates strong incentives for product innovations (new luxuries). We show that the inequality-growth relationship depends on which type of innovative activity drives technical progress, analyzing both the characteristics of and the transition to the balanced growth path.en
dc.language.isoengen
dc.publisher|aVerein für Socialpolitik |cFrankfurt a. M.en
dc.relation.ispartofseries|aBeiträge zur Jahrestagung des Vereins für Socialpolitik 2010: Ökonomie der Familie - Session: Technology and Growth |xB1-V1en
dc.subject.jelO30en
dc.subject.jelO15en
dc.subject.jelD30en
dc.subject.ddc330en
dc.subject.keywordinequalityen
dc.subject.keywordtechnical changeen
dc.subject.keywordgrowthen
dc.subject.keywordmass productionen
dc.subject.keywordproduct innovationsen
dc.subject.keywordprocess innovationsen
dc.titleThe Macroeconomics of Model T-
dc.typeConference Paperen
dc.identifier.ppn655954198en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen

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